Question
Circumstances which may contribute to the need to perform direct test of details of income statement accounts include all the following except a. Management is
Circumstances which may contribute to the need to perform direct test of details of income statement accounts include all the following except
a. Management is responsible for establishing the process and controls for preparing accounting estimates.
b. The auditor should obtain sufficient evidential matter to provide reasonable assurance that all accounting estimates that could be material to the financial statements have been developed.
c. An entity's internal control structure cannot be relied upon to reduce the likelihood of material miss statement of accounting estimates.
d. The auditor should evaluate the reasonableness and consistency of the assumptions to use by management and developing the estimates.
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